PAS deputies adopt the most important budget laws for 2023 in the first reading
The Parliament adopted in the first reading the budget laws for next year. The debates lasted more than six hours. The budget is one of crisis in the conditions in which the economy will not fully recover, say deputies. The opposition did not vote for any of the four drafts of the public budget.
The government introduced progressive taxation with a threshold of one million lei per year. Lower incomes will be taxed at 12 percent, while 18 percent is the tax on incomes above the one million cap. Moreover, interest income from bank deposits will be taxed at seven percent instead of three. The salaries of state employees will increase by exactly 1,300 lei, the minimum income was estimated at four thousand lei, and the average salary in the economy at 11,700 lei. Local authorities received road taxes and the right to set real estate taxes on their own, while, according to the budget laws voted today by the deputies, the business environment will benefit from facilitations regarding the value added tax. At the same time, the state will refund VAT to small and medium-sized enterprises that use the electronic invoice, commercial companies will not pay profit tax, provided they do not distribute it to dividends. The opposition accused the government of favoring the banks. The medical insurance budget is 14.1 billion lei. The state will spend more than 38 billion lei on pensions and social allowances. The budget deficit is about 18 billion lei. Real economic growth will not recover this year's losses and inflation will ease to 15.7 percent.
